January–March 2022 in brief

  • Net sales totaled €4.4 million (€2.6 million)
  • EBITDA was €0.5 million (-€0.9 million)
  • The operating result was -0.2 million euros (-1.4 million euros)
  • Operating cash flow was EUR 0.8 (EUR 0.0 million)
  • Subscription revenue, ARR was €8.1m (€1.2m)
  • Recurring revenue, ARR was €16.4m (€8.9m)

Cash remained stable at EUR 7.6 million (EUR 7.5 million).

millions of euros 1–3/2022 1–3/2021 Switch % 1–12/2021
Net sales 4.4 2.6 64.3 15.9
EBITDA 0.5 -0.9 159.7 1.1
% of net sales 12.3 -33.9 136.2 7.0
Operating profit/loss -0.2 -1.4 84.1 -1.5
% of net sales -5.2 -53.5 90.3 -9.6
Profit/loss before tax -0.2 -1.5 87.2 -1.8
loss of profit -0.1 -1.5 90.1 -2.3
Return on equity, % -1.5 -20.9 92.8 -22.6
Return on investment, % -1.4 -17.8 92.1 -14.2
Cash 7.6 7.5 0.9 8.2
Gear (%) -38.7 -109.4 64.6 -39.8
Equity ratio (%) 43.8 60.6 27.8 44.6
Earnings per share, EUR -0.01 -0.05 73.6 -0.10
Equity per share, EUR 0.28 0.15 87.6 0.31
Recurring revenue, ARR 16.4 8.9 83.6 15.4
Subscription revenue, ARR 8.1 1.2 586.8 7.3
millions of euros 1–3/2022 1–3/2021 Switch % 1–12/2021
AMERICAS 1.7 1.7 -2.4 6.6
APAC 0.4 0.3 16.7 1.7
EMEA 2.3 0.6 263.5 7.7
Total 4.4 2.6 64.3 15.9
Sale of subscriptions 2.0 0.2 746.8 4.7
License sales 0.3 0.5 -42.7 3.1
Servicing sales 1.9 1.8 6.4 7.6
Professional and other services 0.1 0.0 101.8 0.6
Total 4.4 2.6 64.3 15.9

SSH Communications Security provides alternative performance measures, which are not defined by IFRS standards. Alternative performance measures should not be considered substitutes for performance measures under IFRS. Alternative performance measures are:

EBITDA = Operating profit + depreciation.
Annual Recurring Revenue (ARR) Subscription: Subscription revenue in the last month of a reported quarter multiplied by 12.
Annual recurring revenue: subscription revenue + maintenance at the end of the last month of the declared quarter multiplied by 12.

BUSINESS OUTLOOK FOR 2022 (unchanged)

We are continuing our business transition from a license and support model to a recurring revenue model, which we believe will provide more stable revenue over the longer term, while reducing our near-term annual growth rate compared to a perpetual license business model. At the end of 2021, our annual recurring revenue was €15.4 million (€8.0 million), positioning us well for continued growth. We expect net sales growth in 2022 compared to 2021. We estimate that EBITDA and cash flow from operating activities will be positive for 2022.


Dear shareholders, customers, partners and colleagues,

The year started off on a generally positive note for SSH. We continued to grow, significantly improving our profitability and operating cash flow.

Net revenue was €4.4 million, up €1.8 million compared to the first quarter of 2021. EBITDA was €0.5 million. euros, an improvement of 1.4 million euros compared to the comparison period. The first quarter was the fourth consecutive quarter with positive EBITDA. During the first quarter, cash flow from operations amounted to 0.8 million euros, an improvement of 0.7 million euros compared to the comparison period.

Recurring revenue represented 90.6% of total revenue in the first quarter and our annual recurring revenue (ARR) was €16.4 million, of which €8.1 million was subscription revenue. During the first quarter, our subscription revenue exceeded our maintenance revenue. Our annual recurring revenue exceeded our reported revenue for the year 2021.

During the first quarter, we acquired over 90 new customers showing growing interest in defensive cybersecurity services.

PrivX has grown significantly

PrivX revenue increased 225% in the first quarter compared to the comparative period. The PrivX OT and MSP editions have been well received in the market and our expansion and extension approach has good traction.

Our three flagship solutions that help our customers defend their critical data are Zero Trust (ZT), Operational Technology (OT) and Quantum Safe (QS).


The war in Europe and incidents of cyberattacks affecting critical physical infrastructure have increased interest in our solutions for protecting critical operational data in factories, power generation, airports and ports. We believe that our success with the PrivX OT Edition helps us leverage our pioneering position in critical infrastructure protection, including healthcare, by protecting our customers’ critical data management at rest, in transit and in use.

Zero Trust

Zero Trust means passwordless user access and real-time control of application-to-application communications. SSH has been developing Zero Trust solutions for privileged access management since 2017 with our largest development investment ever in PrivX – a lean cloud-native solution for just-in-time (JIT) and just enough (JEA) access supported. support with role-based access control (RBAC). PrivX technology is integrated into our existing products with our Zero Trust Editions to ensure our customers’ secure migration to passwordless, PINless, and dongle-less operation. We believe that in the future, the above will increasingly be replaced by biometric identification methods that the PrivX architecture already supports.

Quantum Vault

Post-quantum cryptography is a technology that we have been focusing on for several years. Global interest in post-quantum cryptography has increased significantly in recent times. Thanks to determined investments, we now have one of the strongest post-quantum crypto development teams in Europe.

NQX and encryption activity

A significant portion of our pipeline is awaiting Finnish NCSA certification of the latest software release and we expect to receive certification in the first half of Q2.

Most of our encryption solutions will be delivered on a subscription basis, and we anticipate that achieving certification will have a positive impact on our subscription revenue. We expect our encryption business to be an important driver of growth over the medium to long term.

Go forward

We see three megatrends emerging in the cybersecurity landscape: Zero Trust (ZT), Operational Technology (OT), and Quantum Safe (QS). Over the past year, we have focused on improving our customer relationship and our portfolio, from point products to value-added solutions. Our proven products and future-proof technologies in cryptography and privileged access management have created a solid platform for future growth building on our many flagship customers acquired over the past year.


board of directors

Teemu Tunkelo

For more information, please contact:

Teemu Tunkelo, CEO, tel. + 358 40 549 9605
Niklas Nordström, CFO, tel. +358 50 541 0543


Nasdaq Helsinki Ltd.
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